Mumbai: Successful auction of fugitive gangster Dawood Ibrahim's properties in the megapolis shows that his clout has declined, former Mumbai police commissioner D Sivanandhan said on Tuesday.

"The three properties auctioned on Tuesday should be used to house either government offices or police posts," the former Director General of Police of Maharashtra told PTI.

Dawood Ibrahim's properties Damarwala, Shabnam Guest House and Delhi Zaika hotel, which were auctioned under Smugglers and Foreign Exchange Manipulators (SAFEMA) Forfeiture of Properties Act in Mumbai on Tuesday. PTI

"The successful auction also shows that the government has the upper hand, compared to the earlier auction attempts when few dared to bid for these properties fearing the gangster's wrath," he said.

Pakmodia Street in south Mumbai, where the auctioned properties are located, was the den of the fugitive don till early 90s.

"Once he lorded over that area. Nobody could venture out on the Pakmodia Street without Dawood's or his men's knowledge," the former IPS officer said.

"Today, with the auction of his three prime properties — Hotel Rounaque Afroz, Shabnam Guest House and six flats of Damarwala Building — it is clear that the government has established a grip on things," Sivanandhan said.

"This (auction) is an important development. It shows that the government means business. This attitude will be helpful in bringing down Dawood's empire," he said.

"Who purchased these properties and for what purpose is another issue," the former top police officer said.

Three south Mumbai properties belonging to Dawood Ibrahim, which are in a dilapidated condition, were auctioned for Rs 11.58 crore on Tuesday, an official said.

The Saifee Burhani Upliftment Trust (SBUT) has bought the properties for its redevelopment project.